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Author Topic: What percentage of your microstock earnings do you reinvest???  (Read 5627 times)

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« on: May 16, 2009, 18:16 »
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Hi,

I am interested in the ration between your microstock-returns and the amount of money you spend for microstock-shootings.

I try to reinvest about 15% of my microstock earning. Camera, lenses and other equipment is financed by this 15 %.

The problem is: I am not sure whether 15 % is a good amount or not.

From an economic point of view is there an optimal level of investment? Which investment quota maximizes the earnings over the time?

Solow (a famous economist) would say the optimal level of investment is at the point where investment equals amortization, but I think this is not practicable for this issue.

I guess it depends on many variables.

Thanks a lot
Gunnar


lisafx

« Reply #1 on: May 16, 2009, 19:15 »
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In 2008 my expenses ran around 15%. 

I don't know if I would call that reinvestment though.  A lot of it went to locations, props, models office supplies, and yes also some equipment.   

I just look at it as the cost of doing business.

« Reply #2 on: May 16, 2009, 20:16 »
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In 2008 my expenses ran around 15%. 

I don't know if I would call that reinvestment though.  A lot of it went to locations, props, models office supplies, and yes also some equipment.   

I just look at it as the cost of doing business.

I'd certainly call all of that a reinvestment.  You need good basic gear but you also need to make images.

« Reply #3 on: May 16, 2009, 20:43 »
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Whatever I want to spend, I guess.  I don't try to analyze it with equations or anything.

« Reply #4 on: May 16, 2009, 20:48 »
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Ditto. If I have a need for it I'll spend. If I don't, I won't.
I've bought a monitor and two external HDs so far this year.
« Last Edit: May 16, 2009, 20:50 by sharply_done »

« Reply #5 on: May 17, 2009, 07:59 »
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We reinvest quite a considerable percentage of the earnings back into the business at the moment, maybe up to 60%. This goes to pay for studio rental, new equipment and overseas shoots with good models. We have also just hired a new full-time editor/assistant so even more money for now is going into the business. Hope it pays off in the long-term.

« Reply #6 on: May 17, 2009, 10:51 »
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All of my earnings go into my PayPal account - and all of my photo and related purchases (external hard drive, filters, etc.) come out of those earnings.....

So, for the last two years I've re-invested 100% of my earnings back into photography.

Perhaps I'll "harvest" some earnings down the road, but right now it makes it much easier to justify a purchase (a lens, for example) when it is being paid for completely out of photo earnings.

« Reply #7 on: May 17, 2009, 14:52 »
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Now that you've mentioned...
we must be investing more than 3.000 % of our microstock earnings
but our business model doesn't depend on microstock so don't follow that road... ;-)

« Reply #8 on: May 17, 2009, 14:55 »
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I don't buy equipment for stock photography, I buy them for my own pleasure in photography and then I use them also for "shooting stock".  I don't buy that much equipment anyway, but I was happy to see that my DSLR and lenses, when I bought them in 2007, costed less than I had earned so far in stock photography as a whole. 

« Reply #9 on: May 17, 2009, 20:26 »
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last year around 15% this year it is between 20 and 25%, mostly gear from changing systems, a workshop etc.  at least this is the figure for physical items, I haven't been accounting for travel etc.
« Last Edit: May 18, 2009, 05:50 by Phil »

« Reply #10 on: May 18, 2009, 01:40 »
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I spend 60% of my microstock income on photography expensive which include traveling, new equipment, computers, props etc. and keep very close tabs on what is paid out to myself and what is used for expenses as it is my primary source of income.

I am happy with that amount though (the amount of pay it generates) and the amount i have gotten to travel and soon feel I have most of the lenses and cameras on my wish list, but I am still dreaming of a new monitor, computer upgrade and well, there are a couple lenses I would like still :)

I am envious of those who manage to only spend %15 of their income.

« Reply #11 on: May 18, 2009, 01:48 »
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I think I spend about 350%  ;D

« Reply #12 on: May 18, 2009, 01:55 »
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As much as needed.  This year about 70 %.  Just finished setting up a new studio.  On a monthly basis, cost for models, props.

Next on my to do list : new camera with high resolution to stay in the game and face the competition.

Patrick H.

« Reply #13 on: May 18, 2009, 03:11 »
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I think I spend about 350%  ;D

I think I'm about the same!  :o

« Reply #14 on: May 18, 2009, 07:39 »
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I think I spend about 350%  ;D
Same here!

« Reply #15 on: May 18, 2009, 08:28 »
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have spent 100% of all times in batteries for strobes and triggers, (sometimes I forget to recharge spare set and must run to a 7/11)

« Reply #16 on: May 18, 2009, 09:21 »
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I've spent more money than I've made 14 months in. Had to buy all of the photography equipment and this year I will be replacing my 6-year old computer and upgrading my software. Have another full time job so it is fine to be spending all this money now.


« Reply #17 on: May 18, 2009, 23:48 »
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I think I spend about 350%  ;D
Same here!
Hmm, I'm afraid my percentage is higher :)

« Reply #18 on: May 19, 2009, 23:28 »
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I've spent more money than I've made 14 months in. Had to buy all of the photography equipment and this year I will be replacing my 6-year old computer and upgrading my software. Have another full time job so it is fine to be spending all this money now.

That's actually pretty good.  Any other start up business expects to run in the black the first three years, then break even for the next two before turning a profit. 

Microstock is one of the very few businesses where you can start seeing profit during, or shortly after, that first year.  I think it depends on how you approach it and whether it's a hobby or a full blown business.

« Reply #19 on: June 03, 2009, 08:31 »
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I think I spend about 350%  ;D
Same here!
Hmm, I'm afraid my percentage is higher :)


remember, this is just stock ;-)  you should not be over investing in something that does not return. ;-)  unless your not in it for the money.


 

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